Supreme Court has considered the Rule in
McDowell as under:-
The respondents strenuously criticized the act of incorporation by FIIs under the
Mauritian ... rely on the judgment of the Constitution Bench of this court
in McDowell and Co. Ltd. v. Commercial Tax Officer [1985] 154 ITR 148.
Placing
Mcdowell & Company Ltd vs The Commissioner Of Central Excise, ... on 14 November, 2017
IN THE CUSTOMS, EXCISE AND SERVICE TAX
APPELLATE TRIBUNAL, SOUTH ZONAL ... passed by the Commissioner of Central Excise, Bangalore.]
M/s. McDowell & Company Ltd.
Food Flavour Division
Appellant(s)
Versus
The Commissioner of Central Excise
Supreme Court's decision rendered in the case
of McDowell & Co. Ltd. v. CTO 154 ITR 148 is not
applicable on the facts
ratio of the decision of the Supreme Court in the case of McDowell
& Co. Ltd. v. CIT [1985] 154 ITR 148/22 Taxman ... Counsel placed heavy reliance on the decision in the case of McDowell & Co.
Ltd. (supra) to contend that transaction itself should be ignored
Jcit 9(1)(2), Mumbai vs Apex Infra Tech P Ltd, Mumbai on 23 August
Entity and to look into reality of transaction. In the case of
McDowell & Co. 154 1TR 148(SC) it was stated that implications ... aforesaid two decisions concluded as follows:
"The majority judgment in McDowell held that tax planning may
be legitimate Provided it is within ilieframeit
Smt. Lalitaben Govindbhai Patel,, ... vs The Cit, A'Bad-I,, Ahmedabad on 17 May
Reliance was also placed by the learned counsel for
the revenue on McDowell & Co. Ltd. v. CTO [1985] 154 ITR 148
(SC). That decision ... Reddy, with which other
learned Judges of the Full Bench agreed in McDowell & Co.
Ltd.'s case (supra). He invited us that having
Entity and to look into reality of transaction. In the case of McDowell
& Co. 154 ITR 148(SC) it was stated that implications
does not survive and
the question of application of the decision in McDowell's case by
treating transaction as colourable is not justified. Thus ... concerns).
It has been contended by the appellant that the decision in
McDowell's case cannot be applied in cases of genuine, legal
